CALGARY, Alberta, March 17, 2016 (GLOBE NEWSWIRE) — Toscana Energy Income Corporation (“TEI” or the “Corporation”) (TSX:TEI) announces financial and operating results for the fourth quarter and year ended December 31, 2015, and the Corporation’s 2015 year-end reserves.

2015 Highlights

Continued to grow its high quality, long life, low decline asset base

Increased Total Reserves by 9%

Proved Reserves at 72% of Total Reserves

Acquired four strategic acquisitions in an opportunistic commodity price environment

Realized hedging gains of $7.2 million

Reduced G&A by $1.12/boe

Financial and operating results:

The following summarizes information contained in the Consolidated Financial Statements and Management’s Discussion and Analysis (“MD&A”) for the year ended December 31, 2015. This news release should not be considered a substitute for reading the full disclosure documents, which are available on SEDAR at www.sedar.com and on the Corporation’s website at www.sprott-toscana.com.

1 Non-IFRS measure.2 One-time expense of approximately $4.6 million incurred in the second quarter of 2015, relating to the previously announced performance fee buyout.

Corporate Reserves:

The reserves data set forth below is based upon independent reserve assessments and evaluations prepared by:

Sproule Associates Limited (“Sproule”) dated February 18, 2016 with an effective date of December 31, 2015;

GLJ Petroleum Consultants (“GLJ”) dated March 7, 2016 with an effective date of December 31, 2015; and

McDaniel and Associates Consultants Ltd. (“McDaniel”) dated March 17, 2016 with an effective date of December 31, 2015
(together referred to as the “Reserve Reports”).

The following summarizes the Corporation’s crude oil, natural gas liquids and natural gas reserves and the net present values before income taxes of future net revenue for the Corporation’s reserves using forecast prices and costs based on the Reserve Reports. The Reserve Reports have been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the “COGE Handbook”) and the reserve definitions contained in National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101).

All evaluations and reviews of future net revenues are stated prior to any provisions for interest costs or general and administrative costs and after the deduction of estimated future capital expenditures for wells to which reserves have been assigned. It should not be assumed that the estimates of future net revenues presented in the tables below represent the fair market value of the reserves. There is no assurance that the forecast prices and cost assumptions will be attained and variances could be material. The recovery and reserve estimates of our crude oil, natural gas liquids and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and natural gas liquids reserves may be greater than or less than the estimates provided herein for the fiscal year ended 2015.

Reserves Summary

The Corporation’s total proved plus probable reserves (including royalty interests) increased by 9% in fiscal 2015 to 10,419 Mboe. Proved reserves increased by 12% to 7,463 Mboe and comprised 72% of the Corporation’s total proved plus probable reserves at December 31, 2015. The Corporation had 350 Mboe of proved undeveloped reserves (including royalty interests) at December 31, 2015, representing 3% of total proved and probable reserves and 5% of total proved reserves.

The future capital in the Reserve Reports (undiscounted) is $4.4 million for the proved and probable reserves and $3.0 million for total proved reserves.

The following table provides summary reserve information based upon the Reserve Reports and using published price forecasts used by each of Sproule, GLJ and McDaniel.

Light and Medium
Crude Oil

Natural Gas

NGL

Total Oil
Equivalent

Reserves Category

Gross

Net1

Gross

Net1

Gross

Net1

Gross

Net1

(Mbbl)

(Mbbl)

(MMcf)

(MMcf)

(Mbbl)

(Mbbl)

(MBOE)

(MBOE)

Proved

Developed Producing

2,430

2,207

18,931

19,096

599

502

6,184

5,891

Developed Non-Producing

112

111

1,828

1,724

28

19

445

417

Undeveloped

176

152

–

717

–

53

176

326

Total Proved

2,718

2,470

20,759

21,537

627

574

6,805

6,634

Probable

1,059

912

8,776

8,902

205

191

2,727

2,587

Total Proved plus
Probable

3,777

3,382

29,535

30,439

832

765

9,532

9,221

Notes:

(1) “Net” reserves means the Corporation’s working interest (operated and non-operated) share after deduction of royalty obligations, plus the Corporation’s royalty interest in reserves.(2) Due to rounding, certain totals may not be consistent from one table to the next.

Light and
Medium Crude
Oil

Natural Gas

NGL

Total Oil
Equivalent

Royalty Interest

Royalty Interest

Royalty Interest

Royalty Interest

(Mbbl)

(Mmcf)

(Mbbl)

(Mboe)

Developed Producing

63

1,773

118

475

Developed Non-Producing

8

5

–

8

Undeveloped

1

717

53

175

Total Proved

72

2,495

171

658

Probable

25

878

57

229

Total Proved plus Probable

97

3,373

228

887

Light and
Medium Crude
Oil

Natural Gas

NGL

Total Oil
Equivalent

Company Interest1

Company Interest1

Company Interest1

Company Interest1

(Mbbl)

(Mmcf)

(Mbbl)

(Mboe)

Developed Producing

2,493

20,704

717

6,659

Developed Non-Producing

120

1,833

28

453

Undeveloped

177

717

53

351

Total Proved

2,790

23,254

798

7,463

Probable

1,084

9,654

262

2,956

Total Proved plus Probable

3,874

32,908

1,060

10,419

Note:(1) “Company Interest” reserves means the Corporation’s working interest (operating and non-operating) share before deduction of royalties and includingroyalty interests of the Corporation.

Reserves Values

The estimated before tax net present value of future net revenues associated with the Corporation’s reserves effective December 31, 2015 and based on the published future price forecasts are summarized in the following table:

Reserve Values ($’000s)

Undiscounted

5

%

10

%

15

%

20

%

Proved Producing

169,583

123,383

96,761

79,574

67,625

Non-producing

8,581

6,622

5,245

4,258

3,160

Undeveloped

12,732

9,578

7,560

6,160

5,027

Total Proved

190,896

139,583

109,566

89,992

75,812

Probable

88,492

48,899

31,331

21,968

14,517

Total Proved and Probable

279,388

188,482

140,897

111,960

90,329

Notes: (1) The estimated future net revenues are stated after deducting future estimated site restoration costs and are reduced for estimated future abandonment costs and estimated capital for future development associated with the reserves. (2) The net present value of future revenues does not represent fair market value.

The following table sets forth development costs deducted in the estimation of the future net revenue attributable to the reserve categories noted below.

Forecast Prices and Costs

Proved
Reserves

Proved plus Probable
Reserves

Year

($’000s)

($’000s)

2016

872

885

2017

737

1,059

2018

1,176

1,666

2019

–

571

2020

–

–

Remainder (FY 2021 and beyond)

248

247

Total Undiscounted (all years)

3,033

4,428

Total Discounted (10%)

2,510

3,598

Dividend Suspension

In light of the continued volatility and uncertainty in the outlook for commodity prices, Toscana announces that it is suspending its dividend program effective immediately. After careful analysis and weighing the risks associated with potentially increasing its debt position, Toscana believes that suspending the dividend is the right decision and will allow the Corporation to protect its balance sheet as well as to improve its ability to allocate capital to fund growth. The Corporation will consider reinstating its dividend program should industry conditions change.

Special Note Regarding Disclosure of Reserves and Resources

Contingent resources is defined in the COGE Handbook as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. Contingent resources are further classified in accordance with the level of certainty associated with the estimates and may be sub classified based on project maturity and/or characterized by their economic status. The contingent resources estimates herein, including the corresponding estimates of before tax present value estimates, are estimates only and the actual results may be greater than or less than the estimates provided herein. There is no certainty that it will be commercially viable or technically feasible to produce any portion of the resources.

Probability

“Low Estimate” is a classification of estimated resources described in the COGE Handbook as being considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the Low Estimate. If probabilistic methods are used, there should be a 90% probability (P90) that the quantities actually recovered will equal or exceed the Low Estimate. “Best Estimate” is a classification of estimated resources described in the COGE Handbook as being considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the Best Estimate. If probabilistic methods are used, there should be a 50% probability (P50) that the quantities actually recovered will equal or exceed the Best Estimate. “High Estimate” is a classification of estimated resources described in the COGE Handbook as being considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the High Estimate. If probabilistic methods are used, there should be a 10% probability (P10) that the quantities actually recovered will equal or exceed the High Estimate.

BOE Equivalency

Barrel of oil equivalents or BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf: 1 bbl, utilizing a conversion ratio of 6 Mcf: 1 bbl may be a misleading indication of value.Oil and Gas Advisory

The reserves information contained in this news release have been prepared in accordance with NI 51-101. Complete NI 51-101 reserves disclosure will be included in our Annual Information Form for the year ended December 31, 2015. Listed below are cautionary statements applicable to our reserves information that are specifically required by NI 51-101:

Individual properties may not reflect the same confidence level as estimates of reserves for all properties due to the effects of aggregation.

With respect to finding and development costs, the aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserve additions for that year.

This press release contains estimates of the net present value of our future net revenue from our reserves. Such amounts do not represent the fair market value of our reserves.

Reserves included herein are stated on a company interest basis (before royalty burdens and including royalty interests) unless noted otherwise as well as on a gross and net basis as defined in NI 51-101. “Company interest” is not a term defined by NI 51-101 and as such the estimates of Company interest reserves herein may not be comparable to estimates of “gross” reserves prepared in accordance with NI 51-101 or to other issuers’ estimates of company interest reserves.

Management uses “netback”, “funds flow from operations prior to performance fee internalization”, “funds flow from operations”, “unused portion of credit facility”, “credit facility utilization” and “credit facility availability” to analyze operating performance and to determine the Corporation’s ability to fund future capital investment. These terms, as presented, do not have any standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and therefore may not be comparable with the calculation of similar measures for other entities.

Forward-Looking Statements:

This news release contains forward‐looking statements and forward‐looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward‐looking statements or information. Forward‐looking statements and information are often, but not always, identified by the use of words such as “appear”, “seek”, “anticipate”, “plan”, “continue”, “estimate”, “approximate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe”, “would” and similar expressions.

More particularly and without limitation, this news release contains forward‐looking statements and information concerning the Corporation’s petroleum and natural gas production and reserves. The forward‐looking statements and information are based on certain key expectations and assumptions made by management of the Corporation, including expectations and assumptions concerning well production rates and reserve volumes; project development and overall business strategy. Although management of the Corporation believes that the expectations and assumptions on which such forward looking statements and information are based are reasonable, undue reliance should not be placed on the forward‐looking statements and information since no assurance can be given that they will prove to be correct.

Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Corporation relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward‐looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to reserves, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions and failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals and changes in legislation, including but not limited to tax laws, royalties and environmental regulations. Accordingly, readers should not place undue reliance on the forward‐looking statements, timelines and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive.

The forward‐looking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws or the Toronto Stock Exchange (“TSX”). The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.

About Toscana Energy Income Corporation

Toscana Energy Income Corporation is a conventional oil and gas producer with the mandate to acquire high quality, long life oil and gas assets including royalties, non-operated working interests and unitized production for yield and capital appreciation. Toscana Energy Income Corporation is managed by Sprott Toscana through Toscana Energy Corporation. Sprott Toscana is a member of the Sprott Group of Companies.

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.